Currencies are going nowhere

Good morning!

It’s a quiet day in FX as of 7:31 a.m. ET with most currencies little changed against the dollar.

Still, one broader trend from the last couple of days that’s worth pointing out is that the Japanese yen and the British pound have reversed course from their post-Brexit behaviour.

The former has been falling against the dollar, while the latter has been advancing this week.

Here’s the scoreboard this morning:

  • The Canadian dollar is little changed at 1.3042 per dollar ahead of the Bank of Canada’s latest monetary policy report, which will be out at 10 a.m. ET. Most analysts expect the bank to keep its key policy rate unchanged at 0.5%.
  • The Japanese yen is little changed at 104.58 after the Japan lowered its 2016 growth forecast to 0.9% from 1.7% and cut its inflation estimate to 0.4% from 1.2%.
  • The British pound is unchanged at 1.3262 against the dollar. Separately, British Prime Minister David Cameron will step down on Wednesday, and the current home secretary and new Conservative Party leader Theresa May will take his place as prime minister.
  • The euro is little changed at 1.1074 after industrial production in the eurozone disappointed, falling 1.2% month-over-month in May, below expectations of a 0.8% drop.
  • The US dollar index is flat at 96.39 ahead crude oil inventories, which will cross the wires at 10:30 a.m. ET, and the Fed’s Beige Book, which will be out at 2 p.m.
  • The Malaysian ringgit ended stronger by 0.4% at 3.9655 per dollar after Bank Negara Malaysia unexpectedly cut rates by 25 basis points to 3.00%. “Global growth prospects have also become more susceptible to increased downside risks in light of possible repercussions from the EU referendum in the United Kingdom,” the bank said in a statement.

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